A state court has rejected a former William Allen High School administrator's attempt to challenge his demotion and loss of retirement benefits.

A Pennsylvania Commonwealth Court panel on Wednesday found that James Dotterer, a former assistant high school principal and 33-year veteran of the Allentown School District, used the improper venue to challenge his demotion to teacher.

In a split 4-3 decision, the panel upheld a previous Lehigh County court ruling that found Dotterer should have appealed through the Pennsylvania secretary of education, not the courts.

Judge Robert Simpson said Dotterer failed to file such an appeal and also failed to seek reinstatement and back pay through the state.

"Dotterer's remedy for a delayed hearing on his demotion was a statutory appeal to the secretary, which he did not pursue," Simpson said.

But not everyone on the panel agreed. Judge Mary Hannah Leavitt said the Allentown School Board demoted Dotterer after he retired, and it was made retroactive to one year before his retirement.

"The board's action was illegal. A demotion must be prospective, and it can never be imposed upon a retired employee," Leavitt wrote in her dissent, which was joined by Judges Dan Pellegrini and Patricia McCullough.

Dotterer spent the last eight years of his career as an assistant principal. On June 21, 2011, he took a medical leave of absence due to shoulder surgery, according to court records.

On June 29, 2011, while on medical leave, Superintendent Russell Mayo informed Dotterer he was being demoted to a teaching position for "performance reasons," according to records.

That action reduced his salary from $100,500 to $80,000, and left him ineligible for fringe and retirement benefits he would have received as an assistant principal.

During court arguments, Dotterer had specifically argued his case did not fall under the authority of the education secretary and should not be transferred there, according to records.

As a result, Simpson refrained from transferring the case to the secretary in his ruling.

"We conclude that Dotterer knowingly and voluntarily relinquished any interest in the procedures set forth in the School Code, including an appeal to the secretary," he said.

Leavitt said the Allentown School Board and district administration did not follow proper procedures in demoting Dotterer, and that he should have been reinstated to his prior position.